James Fisher & Sons – above, below and beyond the world’s oceans, this Blue Economy leader’s shares are due for a re-rating, Interims due shortly, shares at 453p are cheap
- Mark Watson-Mitchell
- 1 minute ago
- 4 min read
Mark Watson-Mitchell - 26.08.2026
“Our market is the ‘Blue Economy’, water is where we come alive.
Our technical expertise and experience spans centuries, industries and continents and our track record allows us to deliver on complex customer challenges in the most demanding environment – the world’s oceans.”
This £228m-capitalised group’s shares have strong attractions despite trading on some 21 times current year earnings!
In a couple of weeks’ time, on Tuesday, 9th September, James Fisher & Sons (LON:FSJ) will declare its Interim Results to end-June.
Over the last couple of years, the group has reshaped itself and it now looks to be progressing ahead expectations.
City analysts are calling its shares a lot higher than the current 453p.
The Business
James Fisher and Sons is a global company that provides services such as engineering, inspection, installation, commissioning, operations, maintenance, lifting and handling to the oil and gas, marine, renewable energy, shipping, defence, nuclear, ports and terminals, transportation, and infrastructure industries.
Its divisions include Energy, Defence, and Maritime Transport.
The Energy division serves the oil and gas and renewable energy sectors.
The company is engaged in the provision of specialist products and support services, and a provider of turnkey operations to the oil and gas industry.
It assists offshore renewable energy developers with technical and operational aspects of site preparation, installation support, commissioning and specialist operation and maintenance.
The group is engaged in the provision of submarine rescue and technical solutions, special operations, diving equipment and marine engineering for the global defence industry.
It provides a comprehensive range of products, services, and solutions for the global maritime transport industry.
Interim Trading Update
On Wednesday, 29th July, the group reported that its first-half trading performance had been in line with expectations, with revenue of approximately £190m and underlying operating profit around £13m, driven by improved margins.
Strong performance in Defence and Maritime Transport offset softer activity in the Energy division, which experienced challenges due to market conditions and project delays.
Despite the Energy division's headwinds, the full-year outlook remains unchanged, with Defence and Maritime Transport expected to outperform previous forecasts, while the Energy division's recovery is anticipated in 2027.
Management Comment
CEO Jean Vernet stated that:
"Our end markets are underpinned by significant long term structural drivers and have remained largely supportive in the first half, despite heightened geopolitical volatility and short-term uncertainty affecting upstream energy activity.
We remain focused on delivering our strategic objectives and are seeing emerging service opportunities that support energy security.
At the same time, we are expanding our presence in attractive growth markets, such as North America, Continental Europe and the Indo Pacific region, while continuing to invest in innovation and enhance our product offering.
Overall, the Board remains confident in the Group's ability to continue building towards its medium-term financial targets of 10% underlying operating margin and 15% ROCE.''
The Equity
There are some 50.6m shares in issue.
The larger holders include The Sir John Fisher Foundation (20.94%), Schroder Investment Management Ltd. (13.37%), Odyssean Capital LLP (8.40%), FIL Investment Advisors (UK) Ltd. (6.15%), Aberforth Partners LLP (5.86%), NFU Mutual Investment Services Ltd. (5.38%), Baillie Gifford & Co. (4.78%), Invesco Asset Management Ltd. (3.81%), abrdn Investment Management Ltd. (3.76%) and Threadneedle Asset Management Ltd. (3.62%).
Broker’s Views
Some six firms follow the group quite closely, each of them calling its shares as a Buy.
The analyst Target Prices range from 575p to 850p.
Berenberg analyst Thomas Rands considers that there is rerating potential at James Fisher given that energy headwinds are being offset by defence tailwinds, he has a Buy out on the shares, with a Target Price of 850p.
Rands reckoned that the Interim Trading Update reported mixed trading, with the energy division hit by a volatile oil price and disruption in the Middle East, which was similar to the impact seen at other global energy service companies in the first half of 2026.
However, he commented that, defence and maritime transport delivered strong trading, helping to somewhat offset the lower energy-related activity.
Earnings are now more weighted to the second half of the year, while management is confident in increased activity delivering the revenue and higher margins required.
“We continue to see medium-term re-rating potential as the business executes its cost base self-help and revenue growth strategy.”
At Singer Capital Markets, analysts Caroline de La Soujeole and Henry Carver have a Buy with a 640p Target Price.
For the current year to end-December, the analysts estimate an almost standstill in revenues at £397.6m (£394.4m), but with adjusted pre-tax profits rising to £17.7m (£15.3m), lifting earnings to 22.2p (19.2p) per share.
The coming year could see £417.3m revenue, £22.0m profit, and 29.2p earnings per share.
Looking into the 2028 year, they go for £438.3m revenue, £25.2m profit and 33.5p earnings.
The analysts consider that following a significant reshaping of the portfolio, FSJ has entered a new chapter focussed on profitable, sustainable growth.
The group’s transformation is on track to deliver its medium-term 10% operating margin target, and that they believe the shares do not fully reflect the group's earnings growth potential and margin recovery opportunity.
My View
Based upon the broker’s predictions,
the group’s shares could be trading at only 13.5 times price/earnings within the next couple of years.
Bouncing around at their year’s low of 453p, I consider that now could prove to be a good time for an opportunistic purchase.
(Profile 11.02.25 @ 345p set a Target Price of 410p*)
(Profile 24.02.26 @ 498p set a Target Price of 580p)
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